Consumers Tighten Their Belts As Inflation Skyrockets
A survey conducted by the state news broadcaster, ČT24, showed that up to half of the Czechs are reducing food purchases, but almost half of the population does not want to give up investing in their free time. Photo credit: Freepik
Czech Republic, June 23 (BD) – The research surveyed the first cutbacks that families have made due to the high inflation of the country. 35% of respondents said they were limiting purchases of electronic products and household equipment, while 9% limited purchases of clothing and footwear. Many retailers after the pandemic crisis are now facing the danger of inflation which will result in the loss of customers.
The most important data comes from the food industry. 50% of Czechs said they have limited meals out to some extent, while a further 9% plan to do so in the future. The latest data from the Ticket Restaurant Card Index show that about one third fewer diners are going to restaurants for lunch than before the Covid-19 pandemic. While restaurants have become more expensive by a quarter, bistros have increased by a fifth. However, consumer pickiness about what to buy is not only affecting the catering industry, “This applies to all basic products. The more expensive ones, even if often of higher quality, sell less, as people simply aim for the price,” said Miloš Škrdlík, managing director of the Brněnka mini-supermarket chain.
Which family expenses do you pay most attention to?
People are choosing to cut “unnecessary” expenses, without giving up investing in their free time. In fact, 45% of Czechs replied that they did not intend to reduce spending on sports, culture or leisure. Only one fifth of the general population has drastically reduced expenditure in this area. The need to dig deeper into the wallet is also manifesting itself in fitness centres, where subscription numbers have decreased, and people preferring to bring food and drink to work rather than buy on site.
Even the travel sector, despite the post-Covid recovery, is affected by the effect of inflation. A quarter of Czechs say that they have reduced expenditure considerably, 17% say that they have reduced expenditure to some extent and 13% consider doing so in the future. This contrasts with the 38% who continue to travel as before.
The survey lasted from 16 May to 2 June, with 1,200 representative respondents.